• by Jack Loechner , Staff Writer @mp_research, August 15, 2007

Seven Different Types of News Readers Makes Niche Offerings Viable

A recent exclusive Web release of a McKinsey study suggests that consumers are thwarting the efforts of the media's significant investments in upgrading online news properties with digital technology in hopes of "owning" customers. The online survey shows that the respondents divide their time among as many as 16 different news properties a week.

Respondents answered questions about their news habits across five media platforms (radio, television, newspapers, magazines, and the Internet) and about their preferences among 100 news brands.

The survey found that consumers rely on a large number of brands: 12 to 16 a week across five different platforms. Moreover, respondents reported using many of those brands daily or, in the case of Internet news sites, many times a day. The reasons given for visiting a number of sources included "every news event has at least two sides," to "get all the facts," to "form my own opinion," or to find specific types of content, such as local news.

This "Brand promiscuity" says the report, is the norm. The findings have implications for media companies as they refine their products and strategies.

Respondents, however, expressed clear preferences for certain platforms. Percent of respondents describing certain media most useful ranked as follows:

• Television  45%
• Internet  26
• Newspaper  18%
• Radio  10%
• Magazines  1%

When asked to explain which sources of news were most useful, respondents expressed a preference for those offering convenience, comprehensiveness, or timeliness rather than quality.

The most significant differences observed among the respondents concerned their motivations for consuming news. "citizen readers," "news lovers," and "digital cynics," representing 18, 15, and 18 percent of respondents, respectively, make up 75 percent of the audience for online news sites.

Citizen readers say that they have a responsibility to stay informed about current events and follow news stories to feel connected to other people in their regions, their countries, and the world. Fully 63 percent of them consider newspaper reading an important ritual passed down by their families.

By contrast, digital cynics enjoy consuming news much less than other respondents do, and feel little responsibility to stay informed. Nearly half of those in this group say that all news sources are biased, and many report that they trust few news sources to provide accurate information.

In addition, digital cynics were the most likely respondents to avail themselves of alternative news sources, such as blogs or comedy news programs. Digital cynics, like citizen readers, are heavy consumers of TV and the Internet but have more or less abandoned newspapers.

Citizen readers, the target of most traditional print publications, express high satisfaction with existing news products. But digital cynics, who spend 30 to 40 percent less time each day on news than citizen readers and news lovers do, feel dissatisfied with most offline products. Media companies have a significant opportunity to develop niche news products for underserved consumer segments, particularly the digital cynics, concludes the report summary.

For charts and more information about the study, please visit McKinsey here.